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Californians Face 30% Jump in Health-Care Premiums

April 2, 2013 By Editor Leave a Comment

HealthCareCostsCalifornia residents should brace for significantly higher health-care premiums next year, a new study shows.

Covered California, the agency tasked to rolling out the Patient Protection and Affordable Care Act in the Golden State, found nearly five million middle-income residents who are individually-insured could face 30% higher increases next year.

The agency reports the Affordable Care Act benefits low-income residents the most by shedding as much as 84% off their coverage costs. And these figures may push out individual policy holders, who are needed to subsidize those low-income residents’ insurance.

The higher premium costs doesn’t surprise, Kip Piper, of health-care policy advisors Health Results Group, who explains having more bodies in the system that might older, sicker and poorer than before just means the cost to keep them covered will go up for younger and healthier people.

“They may simply opt out, or risk being uninsured. The ACA hopes to get more people into this [insurance] pool, and treat them all pretty much equally. So the young will pay higher premiums to subsidize the old.”

Under current law, Piper says insurers can charge a range of premiums on a scale of one to six dependent on age, sex, location and health status. Under the ACA, that number lowers from one to three, compressing costs for an “adjusted community rating.” The way things stand now, older people are often charged up to five or six times as much for coverage than younger people, he says.

“The people who are least able to afford insurance, or least likely to need it like young healthy males, may just take the risk and be uninsured,” under the new law, he says.

Piper says states like New York already that have already switched to a community rating model, limiting the factors insurers can take into consideration when charging individuals for insurance, won’t see as high premium increases as states like California.

by Kate Rogers / Published March 29, 2013 / FOXBusiness

Filed Under: All Stories, Economy, Elections, Entitlement

Congress Spars Over Universal Background Checks

April 1, 2013 By Editor Leave a Comment

GunControl_kellySenate Democrats recently removed bans on semi-automatic weapons from pending gun-control legislation in apparent hopes of passing the more politically acceptable universal background checks — even referring to the checks as the “sweet spot” of the proposal.

But the issue has turned into the new sticking point in Congress with a top Republican saying Sunday the plan is “going nowhere” and Democrats and other gun-control advocates pressing the issue.

South Carolina Republican Sen. Lindsey Graham repeated the argument among gun-rights advocates that the federal government should not add new checks when existing ones are not enforced.

“The current system is broken,” he said on CNN’s “State of the Union.” “Why in the world would you expand that system if you’re not enforcing the law that exists today. … So I think that legislation is going nowhere.”

Leading gun-control advocate Mark Kelly warned Republican senators that trying to block a vote on new firearms legislation that includes universal background checks could hurt their re-election efforts.

Kelly, a former astronaut and Navy captain, directed his remarks to Sens. Rand Paul and Marco Rubio, among five Republican senators who have suggested they will filibuster a debate and full floor vote.

“They should listen to their constituents” and not get in the way of the debate, Kelly told “Fox News Sunday.”

Kelly, who with wife and retired Congresswoman Gabrielle Giffords leads the gun-control advocacy group Americans for Responsible solutions, said at least 80 percent of voters in Paul and Rubio’s districts favor the checks for potential gun buyers.

Giffords was shot in the head by Jared Lee Loughner, a mentally ill young man, in January 2011 during a town hall-style meeting outside Tucson, Ariz.

New York Democratic Sen. Chuck Schumer told NBC’s “Meet the Press,” he once called background checks the sweet spot “because it would do a whole lot of good and have a good chance of passing.”

“I’m working very hard with both Democrats and Republicans, pro-(National Rifle Association) and anti-NRA people, to come up with a background check that will be acceptable to 60 senators and be very strong and get the job done,” he said. “It’s very hard and we’re working hard and I’m very hopeful that we can get this passed.”

Congress returns April 8 from spring break. No vote on the legislation has been scheduled. But Senate Majority Leader Harry Reid is expected to bring legislation to the floor next month that is likely to include the background check but no bans on semi-automatic weapons and high-capacity gun magazines.

Sens. Ted Cruz, Texas; Mike Lee, Utah; and James Inhofe, Oklahoma, are the three others who have vowed to join in the filibuster.

“We, the undersigned, intend to oppose any legislation that would infringe on the American people’s constitutional right to bear arms, or on their ability to exercise this right without being subjected to government surveillance,” they said in a March 22 letter to Reid, a Nevada Democrat.

Graham said he will not join the filibuster, unless Reid blocks alternative amendments in the floor vote.

Meanwhile, Iowa Sen. Charles Grassley is crafting a Republican alternative to the one recently passed by the Senate Judiciary Committee, his office said Thursday.

No details have been released, but the bill is expected to include tougher laws on straw purchases and illegal gun trafficking, efforts to increase school safety and keeping guns out of the hands of the mentally ill.

A new CBS News poll shows 47 percent of Americans now support tougher gun laws, compared to 57 percent after the December 2012 shooting massacre at a Connecticut elementary school in which 20 first-graders and six adults were killed.

President Obama, who said the day of the shootings was the worst so far of his two-term presidency, push back last week on criticism that Washington has missed its opportunity to pass reform legislation by allowing momentum to fade.

“Let me tell you, people here don’t forget,” said Obama, who will travel Wednesday to Denver to talk with community leaders and local law enforcement officials about new state gun laws. “I haven’t forgotten those kids. Shame on us if we’ve forgotten.”

Kelly also called the potential Grassley bill a “mistake” because it doesn’t include the background check and disagreed with the argument it will lead to a federal registry and possible gun confiscation.

However, he agreed with the argument that states a need to pass along to the federal government information about mentally ill people.

“They absolutely have a point,” Kelly told Fox.

Published March 31, 2013 / FoxNews.com /The Associated Press contributed to this report.

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics

Obama Tries to ‘Shame’ Congress into Approving Gun Control Package

March 28, 2013 By Editor Leave a Comment

obama_gun_controlPresident Obama moved Thursday to put the muscle of the White House and his network of supporters behind a gun control package tracking toward the Senate floor, calling on voters to pressure Congress into backing it as the proposal runs into resistance on Capitol Hill.

The president, in a set of brief remarks from the White House Thursday surrounded by the mothers of shooting victims, raised concern that the shock from the Newtown elementary school shooting could soon fade.

“Less than 100 days ago that happened. … Shame on us if we’ve forgotten,” Obama said. “I haven’t forgotten those kids. Shame on us if we’ve forgotten.”

Amid signals from Washington that the Senate bill could be losing momentum and high-dollar ad campaigns on both sides, the president was there to deliver a message to wavering lawmakers. “Don’t get squishy,” he said.

Obama, accusing opponents of drumming up “fear,” urged supporters to call members of Congress and pressure them into backing the package.

Republican Sen. Mike Lee, of Utah, ripped the president for the remarks, suggesting he was exploiting the Newtown tragedy.

“The proposals the president is calling for Congress to pass would primarily serve to reduce the constitutionally protected rights of law-abiding citizens while having little or no effect on violent crime,” Lee said in a statement. “It is deeply unfortunate that he continues to use the tragedy at Newtown as a backdrop for pushing legislation that would have done nothing to prevent that horrible crime.”

Lee said he and his conservative colleagues plan to ensure that any of the firearms proposals require a 60-vote threshold in order to proceed. This could be a high hurdle for the Senate to clear.

Already, Senate Majority Leader Harry Reid dropped from the main package a proposal to renew and expand the expired assault weapons ban.

The base bill will instead cover universal background checks, strengthened punishments for illegal trafficking and more money for school security.

Items like school security enjoy broad support. But the move to include private sales — including gun show purchases — in the background check system remains controversial in some circles. Plus the assault weapons ban, which Republicans most adamantly oppose, is still expected to get a vote as an amendment to the main bill.

The National Rifle Association, during and after Obama’s remarks, tweeted a flurry of comments criticizing the latest Obama push. The group accused him of campaigning “against guns to please the fringe.”

Both sides of the gun debate are stepping up their effort to sway Congress. While the NRA has been vocal since the start of the process, New York Mayor Michael Bloomberg just launched a $12 million ad buy in support of the legislation.

“It’s not done until it’s done,” Obama said Thursday. “There are some powerful voices on the other side that are interested in running out the clock, or changing the subject. … They’re doing everything they can to make all our progress collapse under the weight of fear and frustration.”

Published March 28, 2013 / FoxNews.com

Filed Under: All Stories, Economy, Elections, Ethics

Teachers’ Union: F

March 28, 2013 By Editor Leave a Comment

nea_report_cardWe hear constantly about how American students are losing ground in worldwide performance standards. We score around 500 out of 1,000 in a number of important categories like reading and science.

Every three years the Organization for Economic Co-operation and Development (OECD) Program for International Student Assessment (PISA) report is compiled and released, comparing the knowledge and skills of 15-year-olds in 70 countries around the world. The United States ranks 14th of 34 OECD countries for reading skills, 17th for science, and a dismal 25th for mathematics.

The man-on-the-street interview has become common fodder for comedy shows, because the ignorance of the average American is overwhelmingly predictable. If you don’t believe it, casually ask someone in Starbucks the most fundamental of social studies questions: how many senators are in the US congress, or even the name of the vice president. You will be surprised at the number of blank stares you receive.

The Dumbing Down of America

So what do children learn in schools under the stern directives of the National Education Association? They learn about global warming, necessary tolerance for abhorrent human behaviors, and about how bad President Bush was. They are taught to speak out vehemently against anything and everything that is traditional or moral, and to blindly embrace every edict and dogma of the left.

Our classrooms are often filled with NEA union “change agents,” set in place to transition impressionable minds from logical and moral thought to leftist nonsense of redistribution and “fairness.” Our children don’t dare question the dogmatic edicts of these “community organizers” whose job it is to preach the gospel of the left, numbing the minds of the children and getting them to thoughtlessly repeat the chants and talking points of liberals.

Even in conservative Provo, Utah, we’ve received reports of a female seventh-grade teacher who recently bullied a female student in front of the class for having a note in her papers on the desk that she was supporting Mitt Romney for president. When the girl’s father asked the principal why his daughter was berated in front of the entire class and called “stupid” for her written thought, he was threatened with a lawsuit and a restraining order if he mentioned the incident outside of the principal’s office.

With all of that “education” going on, it’s no wonder that there is no time or energy left over for things like reading, writing and arithmetic.

“This is an absolute wake-up call for America,” U.S. Education Secretary Arne Duncan said in an interview with The Associated Press. “The results are extraordinarily challenging to us and we have to deal with the brutal truth. We have to get much more serious about investing in education.”

Does Education Need More Money?

Duncan’s use of the word “investing” is liberal-speak for raising taxes and feeding the NEA with more money to donate to Democratic candidate political campaigns. In fact, where students are more likely to drop out of school, and to be unemployed when they leave school, we find the highest levels of NEA influence, and the highest support for Democrats. Think east coast and west coast cities, Chicago, Detroit, etc.

Indeed, we constantly hear how underpaid teachers are, and how our schools need more money for the classrooms. Let’s look at some real numbers. First, we spend more than $9,000 per student per year on K-12 education (far more than all the countries who beat us in PISA reports), totaling over $120,000 per student by high school graduation. That is over $800 billion annually, which is a full 4.5% of our gross domestic product.

So where does all of this money go? Around 60% goes to classroom instruction, including teachers’ salaries. The rest (40%) goes to non-teaching employees and extras, in place mainly to ensure federal compliance, to qualify for the small percentage of the local budget that comes from Washington, D.C.

According to U.S. Bureau of Labor Statistics, mechanical engineers earn $31.93 per hour, but public school teachers earn on average more than $34.00 per hour, with an average annual salary of over $47,000. That salary is for a job that consumes just 36.5 hours per week compared with many hours more for nearly everyone else. Compared with public school teachers, editors and reporters earn 24% less; architects, 11% less; psychologists, 9% less; chemists, 5% less; mechanical engineers, 6% less; and economists, 1% less. It is true that there are those who earn more than public school teachers. Nuclear engineers earn 17% more; actuaries, 9% more; and physicists, 3% more. There are public school teachers working for a number of failing school systems who are earning a lot more than most people. The Detroit metropolitan area has the highest average public school teacher pay among metropolitan areas for which data are available, at $47.28 per hour, followed by the San Francisco metropolitan area at $46.70 per hour, and the New York metropolitan area at $45.79 per hour.

We need to invest more? No, we need to take back control of our schools and ensure that motivated teachers are teaching basic educational courses—the kind of subjects that are tested and measured internationally. We need to make sure there is competition in the teaching profession, something the NEA has fought with tremendous ferocity. We need to reward teachers who excel, and fire teachers who aren’t teaching useful subject matter to our children.

PUBLIUS

Filed Under: All Stories, Economy, Entitlement, Ethics

UN Arms Treaty Will Regulate Your Gun Ownership

March 28, 2013 By Editor 1 Comment

gun_controlThe U.N.’s Arms Trade Treaty, which seemed dead last July, is beginning to wrap up negotiations.  The Obama administration is committed to getting it passed . Secretary of State John Kerry confirmed: “The United States is steadfast in its commitment to achieve a strong and effective Arms Trade Treaty.”

The treaty was resurrected on Nov. 8 – the very day after President Obama’s re-election. Very conveniently, that the Obama administration delayed the U.N. vote in favor of renewing negotiations delayed until the president was no longer constrained by public opinion.

The Arms Trade Treaty will regulate individual gun ownership all across the world. Each country will be obligated to “maintain a national control list that shall include [rifles and handguns]” and “to regulate brokering taking place under its jurisdiction for conventional arms.”  In fact, the new background check rules approved by the Senate Judiciary Committee include just those rules — a registration system and a record of all transfers of guns.

The treaty pretends that individual weapons smugglers are the main problem.

But nations themselves will be responsible for enforcing the rules. That means Iran, China, Russia – the leading countries for the truly troubling parts of the international arms trade – are supposed to curb it.  Does anyone actually believe these nations will actually enforce these regulations against themselves?

Democracies are a different story.  Many of their civilians have freedoms to lose. And they are much more transparent on whether they are actually honoring the rules that apply to their governments.

Just like with gun control, in general, it is only the “good guys” who will obey the new rules. The U.N. Arms Trade Treaty, if passed, would only be effective against those countries that choose to obey them.

The treaty pretends that individual weapons smugglers are the main problem. But governments, not private individuals, are the primary source of weapons. For example, the FARC guerrillas fighting in Colombia get their guns from the Venezuelan government.

Unsurprisingly, the U.N. treaty provisions are the long-time favorites of American gun control advocates: registration and licensing of guns and ammunition, along with restrictions on the private gun transfers. Unfortunately, these expensive measures have a long history of failing to curb crime wherever they have been tried and primarily end up disarming law-abiding gun owners.

The treaty pushes gun registration and licensing as a way to trace those who supply these illicit weapons. Yet, to see the problem with these regulations, one only needs to look at how ineffective they have been in solving crime. Canada just ended its long gun registry last year, as it was a colossal waste of money.

Indeed, it is a costly scheme. Beginning in 1998, Canadians spent a whopping $2.7 billion on creating and running a registry just for long guns. With more people and more guns in the United States, the estimated costs for a similar registration scheme for 13 years would be about $67 billion.

Gun control advocates have long claimed registration is a safety issue. Their reasoning is straightforward: If a gun is left at a crime scene, and it was registered to the person who committed the crime, the registry will link it back to the criminal.

Unfortunately, it rarely works out this way. Criminals are seldom stupid enough to leave behind crime guns that are registered to themselves.

As to restrictions on the private transfers of guns, the most common type of regulation discussed in the U.S. today involves background checks. Yet, whether one is talking about the Brady Act or the so-called gun show loophole, economists and criminologists who have looked at this simply don’t find evidence those regulations reduce crime.  It may even increase crime, as fewer would-be victims acquire guns. Unfortunately, just like criminal gangs in the U.S. obtaining guns, it is simply wishful thinking that a United Nations treaty – no matter how well intended – can do much to stop rebel groups from getting weapons.

Obama likes to believe that his re-election gives him a mandate for sweeping changes. Well, he certainly lacks a mandate for these new gun restrictions, as he tried so hard to avoid the U.N. treaty until after the election.

The good news is that even if President Obama signs the U.N. Arms Trade Treaty, it is unlikely to be ratified by the US Senate. Nonetheless, by promoting gun control elsewhere in the world, it might eventually lead to more pressure for gun control here at home.

By John R. Lott, Jr., an economist and former chief economist at the United States Sentencing Commission; also a leading expert on guns. He is the author of several books, including “More Guns, Less Crime.” His latest book is “At the Brink: Will Obama Push Us Over the Edge? (Regnery Publishing 2013).” Follow him on Twitter@johnrlottjr.

Filed Under: All Stories, Economy, Ethics, Foreign

UN Arms Treaty

March 28, 2013 By Editor 1 Comment

Clouds are reflected off the Secretariat Building of the UN headquarters during the 67th United Nations General Assembly, in New YorkUNITED NATIONS –  Supporters of a U.N. treaty designed to regulate the multibillion-dollar global arms trade were optimistic that a final draft circulated a day before Thursday’s deadline will reach consensus.Negotiators reconvened last week in a final attempt to reach a deal on the Arms Trade Treaty, which would require all countries to establish national regulations to control the transfer of conventional arms and to regulate arms brokers.

U.N. diplomats, speaking on condition of anonymity because negotiations have been private, said Wednesday the United States was virtually certain to go along with the latest text.

Hopes of reaching agreement on what would be a landmark treaty were dashed last July when the U.S. said it needed more time to consider the proposed accord — a move quickly backed by Russia and China. In December, the U.N. General Assembly decided to hold a final conference and set Thursday as the deadline for reaching agreement.

“We need a treaty,” China’s U.N. Ambassador Li Baodong told The Associated Press. “We hope for consensus.”

Questions remain on whether Iran, Egypt, India and several other countries that had serious concerns about the text would go along with the draft, which requires agreement of all 193 U.N. member states for adoption.

There has never been an international treaty regulating the estimated $60 billion global arms trade. For more than a decade, activists and some governments have been pushing for international rules to try to keep illicit weapons out of the hands of terrorists, insurgent fighters and organized crime.

“It’s important for each and every country in the world that we have a regulation of the international arms trade,” Germany’s U.N. Ambassador Peter Wittig told the AP. “There are still some divergencies of views, but I trust we can overcome them.”

The draft treaty does not control the domestic use of weapons in any country, but it would require all countries to establish national regulations to control the transfer of conventional arms, parts and components and to regulate arms brokers. It would prohibit states that ratify the treaty from transferring conventional weapons if they would violate arms embargoes or if they would promote acts of genocide, crimes against humanity or war crimes.

The final draft makes this human rights provision even stronger, adding that the export of conventional arms should be prohibited if they could be used in the commission of attacks on civilians or civilian buildings such as schools and hospitals.

The National Rifle Association has portrayed the draft treaty as a threat to gun ownership rights enshrined in the U.S. Constitution and has lobbied to defeat the proposal at the U.N.

The NRA last week praised the Senate’s passage of an amendment to the Democratic budget proposal that would prevent the U.S. from entering into the treaty.

The measure, introduced by Sen. James Inhofe, R-Okla., passed on a 53-46 vote.

“Thanks to the efforts of Senator Inhofe, we are one step closer to ensuring the U.N. will not trample on the freedoms our founding fathers guaranteed to us,” Chris W. Cox, executive director of NRA’s Institute for Legislative Action, said in a statement released following the vote.

Ammunition has been a key issue, with some countries pressing for the same controls on ammunition sales as arms, but the U.S. and others opposed such tough restrictions. The draft calls for each country that ratifies the treaty to establish regulations for the export of ammunition “fired, launched or delivered” by the weapons covered by the convention.

The Control Arms coalition, which represents about 100 organizations worldwide campaigning for a strong treaty, and diplomats from countries that support them, said this wouldn’t cover hand grenades and mines.

India and other countries had insisted that the treaty have an opt-out for government arms transfers under defense cooperation agreements. The new text appears to keep that loophole, stating that implementation of the treaty “shall not prejudice obligations” under defense cooperation agreements by countries that ratify the treaty.

“Making this treaty was like making a sausage: Everyone has added an ingredient,” said Ted Bromund, a senior research fellow at The Heritage Foundation, a conservative think tank.

“Unfortunately, that has produced a document that leans much too far towards satisfying the concerns of the Arab Group and Mexico. The former view it as a rebellion prevention plan, while the latter wants a text that edges towards its view that the domestic firearms market in the U.S. should be subject to treaty regulation,” he said.

But Daryl Kimball, executive director of the independent Washington-based Arms Control Association, said, “The emerging treaty represents an important first step in dealing with the unregulated and illicit global trade in conventional weapons and ammunition, which fuels wars and human rights abuses worldwide.”

He said the text could have been stronger and more comprehensive, but it can still make an important difference.

“The new treaty says to every United Nations member that you cannot simply ‘export and forget,'” Kimball said.

In considering whether to authorize the export of arms, the draft says a country must evaluate whether the weapon would be used to violate international human rights or humanitarian laws or be used by terrorists or organized crime. The final draft would allow countries to determine whether the weapons transfer would contribute to or undermine peace and security.

Anna Macdonald, Oxfam’s head of arms control, said the scope of the weapons covered in the latest draft is still too narrow.

“We need a treaty that covers all conventional weapons, not just some of them,” she said. “We need a treaty that will make a difference to the lives of the people living in Congo, Mali, Syria and elsewhere who suffer each day from the impacts of armed violence.”

Published March 28, 2013 / FoxNews.com / The Associated Press and Reuters contributed to this report.

Filed Under: All Stories, Economy, Elections, Ethics, Foreign

The Spirit of Antichrist Permeates Our Nation

March 27, 2013 By Editor 2 Comments

Satan_ObamaBecause of all the buzz in the press lately about religious freedoms coming under attack, there has been a great deal of discussion about the role of religion in our nation.

Barack Hussein Obama has declared that “America is no longer a Christian nation,” and in our article of May 28, 2012 Obama vs. Catholic Church, we outlined how one of his first acts as POTUS was to insist that the gold “IHS” monograms for the name of Christ be covered up with black painted plywood in Gaston Hall at the Catholic church’s Georgetown University, where he delivered a speech on economics.

We see on national television, in the movies, magazines and other media, on left-leaning news programs, newspapers and the blogs and social networks a hardening stance against Christianity in America. Even our political leaders who claim a Christian background not only embrace practices and policies that are clearly against the teachings of the Bible, but publically belittle and berate anyone who endorses them—or endorses Jesus Christ or His Father, the God of Israel.

The Democratic Party, and indeed, many if not most liberals and progressives in this country have adopted an anti-God, anti-Christian approach to public life, and in a growing number of cases, their personal lives.  See, e.g., our article of September 9, 2012 DNC Boos God . The support for the State of Israel has waned with the decline of Christianity in this country—leaving American Jewish families to wonder if they’ve been abandoned by the Democratic Party that they so willingly embraced.

Antichrist is a personage mentioned in the New Testament of the Bible on a few occasions; but also described is a “Spirit of Antichrist,” illustrated by John the Apostle in 1 John 4 thus:

 3 And every spirit that confesseth not that Jesus Christ is come in the flesh is not of God: and this is that spirit of antichrist, whereof ye have heard that it should come; and even now already is it in the world.

The Apostle further elaborates the principle of the Spirit of Antichrist in 2 John 1, explaining:

7 For many deceivers are entered into the world, who confess not that Jesus Christ is come in the flesh. This is a deceiver and an antichrist.

Indeed, we are deluged in a sea of deceivers. We live in that Orwellian world where good is bad and bad is good, where our universities churn out “spin doctors” by the millions, whose only purpose is to make wickedness appear to be goodness through tolerance and inclusion, and to make enslavement appear as liberty through taxation, regulation and the public dole. They belly up to news desks and slither on couches looking into television cameras and lie about everything with a sophistry that oozes effortlessly from their filthy lips, and assail anyone who dares speak a word of decency or honesty.

Yes, the Spirit of Antichrist has doubtless overtaken our nation’s media, government, education and many other institutions. Deceivers rule the country. It was foretold, and we must accept its eventuality and reality.

The only questions that remain are a) which team’s jersey do you wear? and b) is the person of Antichrist already among us, arising on the scene?

Publius

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics, Religion

The Ghost of Jimmy Carter

March 27, 2013 By Editor Leave a Comment

obama-carterPresident Jimmy Carter promised Hope and Change to an America dragged through the mud by a media feeding frenzy during the Nixon Watergate era.

The left got the white house handed to them, along with the congress, and nothing could stop the wholesale implementation of liberal-progressive policies. Anyone who lived during the Carter administration knows that it was a horrific time in American history.

Carter began his presidency by apologizing for American success, and it wasn’t long before Arabs began slapping him around like the whimp he told them he was.

OPEC decided the US was powerless to oppose them, and they immediately began cutting oil supplies and raising prices. Carter’s response was classic Democrat, demonstrating a complete lack of understanding of global free markets–impose price freezes on gasoline in the US. World oil markets naturally sought out the more lucrative markets and we well recall the gas lines stretching for blocks as Americans waited for hours to get their tanks filled, reminiscent of the Depression Era shortages and rationing schemes.
In grand Neville Chamberlain style Carter immediately tried diplomatic talks with the Soviet Union feeling that thrill going up his leg as the Soviets put their signatures on pieces of paper with him. Of course, while agreeing to limit expansion, the USSR invaded Afghanistan behind his back, bitch-slapping the president of the United States in front of the entire world.

Carter also withdrew US support of the Shah of Iran, historically a strong U.S. ally in the Middle East, one of few who recognized Israel as a sovereign state. Without our support the Shah was forced into exile, replaced by a fundamentalist government, hostile to the U.S. Iranian students stormed the US embassy and took 53 Americans hostages, and held them as political prisoners for 444 days. Carter had been paring back the US military and saw his duty as Commander in Chief as unbecoming a Progressive President, and when it was time to send in a military extraction team to get our hostages out, the equipment failed in one of the greatest military blunders in history. The hostages were kept in Iran and paraded before the world media up until President Elect Ronald Reagan sent Iran the message, “Let my people go,” and they were brushed up and sent back immediately.

Carter, the Apologizer in Chief, also gave up US control of the American-built Panama Canal, affording China and other nations greater access to our easier trade routes, further harming US trade superiority. Seeing no deterrence, the Soviets further expanded their influence in the Western Hemisphere by helping leftists overthrow governments in Central and South America.

Democratic economic strategies had our US economy spiraling in a tailspin, with the prime rate at 21 percent, killing business expansion and the housing market. Of course, unemployment skyrocketed under these circumstances.

DOES ANY OF THIS SOUND FAMILIAR?

This writer has always said that American politics has been reduced to this: The Democrats take control of government based on promises of throwing a big party, and the next election the Republicans are called in to clean up the mess.

At what point will America wake up to the reality that the policies of the left don’t work? It’s time to install a conservative government, and to keep a conservative government in place . . . and replace the long-term growth, development and expansion of personal liberty that we enjoyed for the first 100 years. Call me old fashioned.

PUBLIUS

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics, Foreign

EU Approves Cyprus Bailout Deal, Funded by Bank Assets Seizure

March 25, 2013 By Editor Leave a Comment

cyprus_2Imagine waking up to find out that as much as 40 percent of the money you thought was safely deposited in the bank was seized, without your permission, to bail out a near-bankrupt government.

That’s just what thousands of large depositors in Cyprus woke up to Monday morning after European Union officials accepted a last-minute deal offered by the island’s lawmakers to secure a $13 billion bailout to avert imminent financial meltdown.

The deal, which also slashed the island’s oversized banking sector, came as euro ministers in Brussels threatened to cut off crucial emergency assistance to Cyprus’ embattled banks after business on Monday if no agreement was reached.

Without that EU funding, Cyprus’ banks would have collapsed, dragging the country’s economy down with them and threatening the small Mediterranean island’s membership of the 17-strong group of European Union countries that use the euro — all of which would have sent the EU’s markets spinning.

“It’s not that we won a battle, but we really have avoided a disastrous exit from the eurozone,” Finance Minister Michalis Sarris said in Brussels.

“This decision is painful for the Cypriot people. This decision was a defeat of solidarity, of social cohesion, which are fundamental freedoms, fundamental principles of the European Union,” Parliament President Yiannakis Omirou told AP.

The deal also angered Russia’s leaders. It is believed that many of the affected large accounts belong to Russian depositers, and Moscow has been a major lender to prop up the Cypriot banking system. It’s been estimated that Russians have more than $31 billion deposited in Cyprus banks.

Dmitry Medvedev reportedly likened the deal to “the stealing of what has already been stolen continues,” the Telegraph reported, a reference to Vladimir Lenin’s explanation of the Bolshevik seizure of capitalists’ assets and property.

Last week Medvedev likened the bank seizure to “a certain period of time by Soviet authorities, who did not stand on ceremony when it came to people’s savings.”

Russian President Vladimir Putin, meanwhile, ordered the government to look into restructuring the terms of a more than $3 billion loan, a move that appeared to please EU ministers.

Cyprus banks, meanwhile, were rationing the amount of money they were dispensing to 100 euros, trying to avert a run on cash from nervous depositers.

Under the deal, Laiki, the country’s second-largest bank, will be restructured, with all bond holders and people with more than 100,000 euros in their accounts facing significant losses. The bank will be dissolved immediately into a bad bank containing its uninsured deposits and toxic assets, with the guaranteed deposits being transferred to the nation’s biggest lender, Bank of Cyprus.

Jeroen Dijsselbloem, who chairs the meetings of the eurozone’s finance ministers, said it was not yet clear how severe the losses would be to Laiki’s large bank deposit holders, but he noted that it is expected to yield 4.2 billion euros overall — or much of the money that Cyprus needed to raise to secure the bailout. Analysts have estimated investors might lose up to 40 percent of their money.

Large deposits with Bank of Cyprus above the insured level will be frozen until it becomes clear whether or to what extent they will also be forced to take losses, the Eurogroup of finance ministers said in a statement.

Without a bailout deal by Monday night, the tiny Mediterranean nation would have faced the prospect of bankruptcy, which could have forced it to become the first country to abandon the euro currency. That would have sent the region’s markets spinning.

The eurozone finance ministers accepted the plan after hours of negotiations in Brussels between Cypriot officials and the so-called troika of creditors.

Markets in Europe reacted positively, opening sharply higher, and the euro was back near $1.30, though the measures are likely to deepen the recession in Cyprus.

“We believe that this will form a lasting, durable and fully financed solution,” said IMF chief Christine Lagarde.

To secure the rescue loan package, the Cypriot government had to find ways to raise 5.8 billion euros ($7.5 billion) on its own. The bulk of that money is now being raised by seizing bank assets from large deposit holders, with the remainder coming from tax increases and privatizations.

The cash-strapped island nation has been shut out of international markets for almost two years. It first applied for a bailout to recapitalize its ailing lenders and keep the government afloat last June, but the political negotiations stalled. After a botched agreement last week, the ECB threatened to cut off emergency assistance to the country’s banks.

“We’ve put an end to the uncertainty that has affected Cyprus and the euro area over the past week,” Dijsselbloem said.

That uncertainty around the nation of about 800,000 had shaken the entire eurozone of 300 million people, even though Cyprus only makes up less than
0.2 percent of the eurozone’s economy.

Several national parliaments in eurozone countries such as Germany must also approve the bailout deal, which might take another few weeks. EU officials said they expect the whole program to be approved by mid-April.

Dijsselbloem defended the creditors’ approach of making deposit holders take heavy losses, saying the measures “will be concentrated where the problems are, in the large banks.”

The international creditors, led by the IMF, were seeking a fundamental restructuring of the country’s outsized financial system, which is worth up to eight times the Cypriot gross domestic product of about 18 billion euros.
They said the country’s business model of attracting foreign investors, among them many Russians, with low taxes and lax financial regulation had backfired and needed to be upended.

The drastic shrinking of the financial sector, the wiping out of wealth through the losses on deposits, the loss of confidence with the recent turmoil and the upcoming austerity measures all mean that Cyprus is facing tough times.

Published March 25, 2013 / FoxNews.com / The Associated Press contributed to this report.

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Dems Try to Tax Online Sales

March 21, 2013 By Editor Leave a Comment

fair_taxesCurrently in the U.S., state governments are only obligated to collect sales taxes from online retailers that are based in their own states. If an online sales tax bill makes it to law, states could collect from online retailers that don’t reside in their state.

There’s a good chance you’ve heard of the Marketplace Fairness Act (S.336), before. The bill aims to ensure that states receive taxes that they’ve been otherwise missing out on. A similar proposal is up for vote in the Senate this week thanks to an amendment to a Democratic budget resolution from Senators Mike Enzi and Dick Durbin (pictured), who sponsored the bill.

Opponents are slamming the Senators for trying to “sneak” the legislation through. The Hill reports:

Phil Bond, the executive director of the WE R HERE coalition, accused backers of online sales tax measures of trying to “sneak through” their legislation outside regular congressional order.

“There are good reasons this policy hasn’t been considered in the US Senate for over a decade: Taxpayers don’t like it, it turns the Internet into a tax collection platform, it allows state tax collectors to exercise authority far beyond their boundaries and it will put thousands of small businesses out of business,” Bond, a top Commerce Department official under George W. Bush, said in a statement.

The official summary of the Marketplace Fairness Act says:

The Marketplace Fairness Act grants states the authority to compel online and catalog retailers (“remote sellers”), no matter where they are located, to collect sales tax at the time of a transaction – exactly like local retailers are already required to do. However, there is a caveat: States are only granted this authority after they have simplified their sales tax laws.

Simplification is required because of two Supreme Court rulings (Bellas Hess and Quill, described below) cite concern that collecting sales tax for multiple states would be too difficult.

The Marketplace Fairness Act requires that states must simplify their sales tax laws in order to ease those concerns and make multistate sales tax collection easy. Specifically, states seeking collection authority have two options for simplifying their sales tax laws.

Under the Marketplace Fairness Act, states can join others that have already adopted “simplification measures” of the Streamlined Sales and Use Tax Agreement (SSUTA) or they can meet five mandates listed in the bill. States would have to agree to:

  • Notify retailers in advance of any rate changes within the state
  • Designate a single state organization to handle sales tax registrations, filings, and audits
  • Establish a uniform sales tax base for use throughout the state
  • Use destination sourcing to determine sales tax rates for out-of-state purchases (a purchase made by a consumer in California from a retailer in Ohio is taxed at the California rate, and the sales tax collected is remitted to California to fund projects and services there)
  • Provide free software for managing sales tax compliance, and hold retailers harmless for any errors that result from relying on state-provided systems and data

You can take a look at the bill here. Hundreds of national trade associations, state and local trade associations and businesses support the bill. These are listed here. They include Amazon, Autozone, Barnes and Noble, Bed, Bath, & Beyond, Best Buy, Buy.com, Foot Locker, Gap, Home Depot, Kroger, Lowes, Meijer, J.C. Penney, Safeway, Sears, Petsmart, and Walmart, to name a few.

The bill’s site only lists ten opponents, including: eBay, American Catalog Mailers Assocation, Americans For Prosperity, Campaign for Liberty, Center for Freedom and Prosperity, Computer & Communications Industry Association, Competitive Enterprise Institute, Direct Marketing Association, Freedomwworks, Heartland Institute, Heritage Foundation, National Taxpayers Union, NetChoice, R Street, TechNet, and We R Here Coalition.

AT&T, Council on State Taxation, National Cable and Telecommunications Association, National Federation of Independent Business, and Verizon are listed as neutral or undecided.

The main difference between the Marketplace Fairness Act, and what is coming up for vote this week, is that the new proposal doesn’t include the mandatory simplification, and is non-binding, as CNET’s chief political correspondent Declan McCullagh explains.

“It appears to be intended as a clever political hack: secure plenty of votes on a non-binding Internet tax amendment, then use those vote totals to argue there’s sufficient support for S.336 when it’s up for a binding vote later,” he says, before going to quote eBay’s senior director of federal government regulations and global public policy, Brian Bieron:

“The strategy of the bill’s supporters is to offer this general amendment and then claim that all the senators that vote for it support the bill. That is not just a stretch, it is not accurate. But the game plan is to rack up a sizable vote and then make the claim the bill itself should jump over the Finance Committee and go right to the floor.”

Hence the “sneaking” accusations.

Some supporters of the legislation think it’s really just a matter of when, rather than a matter of if, and whatever happens with this week’s vote could have a significant bearing on that.

Either way, brick-and-mortars have ramped up their lobbying for online sales tax, but opponents claim it’s bad for consumers and for small businesses.

Chris Crum – Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.

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Socialism is Cool (Populist)

March 21, 2013 By Editor 1 Comment

There’s no doubt that Barack Hussein Obama is a populist politician. In many ways he is the every man . . . proving to the masses that indeed, anyone can become the president of the United States of America.

It is a fanciful dream of every American, that each little citizen child can grow up to become the most powerful leader in the world. It is part of our heritage, that no matter how humble the beginnings, or how disadvantaged due to some quirk of life, in this country it is possible to overcome the hurdles and rise to the very top; and in fact, it is true.

In the case of Barack Obama, he was born a minority baby in Hawaii (although he claimed to be born in Kenya when promoting the first of multiple autobiographies) to mixed-race parents (raised by his grandparents), and was saddled with a Muslim name. Although most of his records have been sealed and whisked away to vaults where the vetting process has been declared DOA, he appears to have done well in school at times, and have finished well at ivy league institutions.

Barack Obama appears to have been a fairly common intercity youth, and describes himself as abusing alcohol, marijuana and cocaine, and leaves room to believe there were additional drugs and related activities in the mix.

Obama was a player as a young adult, and describes his out-of-marriage affairs with women of multiple races, although the fact has been recently reported that the identities of these women were mere creations, composites generated for purposes of the books about himself.

Politically, Barack Obama is a Chicago minority street fighter, fitting well into the Democratic machine — “Vote early, vote often!” He describes himself as a “community organizer,” which in retrospect appears to have included an armband of some sort and included duties like registering the Dallas Cowboy Cheerleaders to vote. His politics are those of the ’60s campus radical, as are those of his mentors and appointees. He has exchanged treasury dollars for support and votes in the tradition of his party and as promised, has siphoned trillions of them off to promote his social welfare utopian ideals — most of those dollars ending up in the hands of his cronies. Although this “tax, spend, elect” cycle is short-lived per force, concluding when the treasury is emptied, the tactic often plays well to the electorate, in the short term. That run is about over judging from the 60 percent increase in the national debt in just the first 4 years of Obama’s presidency.

The President has often been seen making the television show circuit, demonstrating to his base that he is indeed the man they were told he was just 4 years ago — before he demonstrated a deaf ear to the citizens of the nation, and turned his tenure into a non-stop vacation cruise around the world.

The President’s White House is reported to be a boy’s club, hostile to working women and focused on sports television programming and drinking beer with other cool guys. The proletariat eats this stuff up.

So is Barack Hussein Obama the coolest president we’ve had in the White House? He’s not the player that Kennedy and Clinton were, and he hasn’t put away as much booze as some of the record holders . . . but all in all, it appears safe to say that he is indeed the most common man that has graced the hallowed sanctum of the people’s house.

Publius

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A Failure to Excommunicate

March 20, 2013 By Editor 22 Comments

Harry-Reid1Reprinted from May 16, 2012. It shouldn’t surprise many people that most members of the Church of Jesus Christ of Latter-day Saints, commonly referred to as Mormons, are politically conservative. Indeed, LDS Church members believe that the Constitution of the United States is a divinely inspired document, and that adherence to its original meaning constitutes living according to God’s will. Church members adhere to a strict code of morality, which includes not just matters of sex outside of marriage, but extends to personal areas such as how they dress in public, what they view, and even what they ingest into their bodies.

Much whispering behind the scenes has been accumulating because GOP Presidential Nominee Mitt Romney is not only a high profile Mormon, but a very dedicated member and leader of the church. While Romney endures off-mic rumor and innuendo for his membership in the LDS Church, the arguably second most powerful politician in the nation, Senate Majority Leader Harry Reid, receives not an utterance about his lifelong membership in the same church.

What is the difference between Mitt Romney and Harry Reid? Politically speaking, the two couldn’t be further apart on almost every issue. On religious and moral issues, however, some might suggest they are kindred spirits—not most LDS Church members, but others might.

In fact, much of what Harry Reid espouses in his public life is repugnant to LDS-Christian doctrine. High taxes, exorbitant debt, burdensome governmental intrusion and regulation into the lives of citizens, socialistic schemes, anti-family policies, welfare dependence, the funding of anti-Christian arts, organizations and lifestyles are only the tip of a burgeoning and murky iceberg that is growing exponentially beneath the waters of American society under the leadership of Reid and his hard left associates.

harry_reidSo how does Harry Reid justify his political views and his divergence from the basic tenets of Mormonism? “I don’t believe in abortion,” is his explanation.

That’s it? He doesn’t support abortion in his political life?

I disagree that Harry Reid’s stated opposition to abortion is enough to save him (in a secular or religious way). Like congressmen who attach their pork barrel projects to bills they know will pass without their votes then quietly vote against them so they can claim fiscal responsibility while collecting campaign contributions for success at “bringing home the bacon,” Harry Reid is only fooling himself that he is a good LDS Church member.

There is a reason that most LDS Church members are conservative. It is a question of morality and personal liberty for them. Harry Reid has supported every anti-American, anti-family, anti-decency piece of legislation that has come down the pike. He is responsible for nearly every dollar of the $15.7 trillion debt—and in case he doesn’t understand it, debt robs liberty and creates poverty. Although he personally votes against direct abortion legislation, he supports candidates and elected officials whom he knows will support it—and that’s supporting it.

So what is the real difference between Mitt Romney and Harry Reid regarding their membership in the LDS Church? On the surface, anyway, the difference is that Romney reflects his religious values in his policies while Reid utterly tramples them in his.

For Harry Reid, and all of those who make a pretense of following Judeo-Christian principles while leading our nation, and indeed, the Western world down a path of fiscal and moral destruction, let me share a scripture that you might recognize, and find helpful in your future career.

“I know your works, that you are neither cold nor hot: I would you were cold or hot. So then because you are lukewarm, and neither cold nor hot, I will spew you out of my mouth.” Revelation 3:15-16.

PUBLIUS

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics, Religion

Non-Embryonic Stem Cells Are Curing Disease Now

March 20, 2013 By Editor Leave a Comment

Those who read George Bush’s Decision Points may have been interested to learn that up until the 9/11 attacks the most important issue facing his administration in his opinion was stem cell policy.

The stem cell problem is rooted in the abortion issue. Liberals support embryonic stem cell research because it bolsters their argument that abortion is socially desirable. President Bush echoed the conservative dilemma as he wrestled with the cost/benefits analysis of stem cell research—at what cost would stem cell benefits come?

President Bush wrote that he labored over the issue, holding out hope that adult stem cells (non-embryonic) would become available and the problems inherent in embryonic stem cells would become irrelevant.

According to Roger Nocera, M.D., that day has arrived. In his book Cells That Heal Us From Cradle To Grave: A Quantum Leap in Medical Science (Amazon ebook), Dr. Nocera reveals that useable adult stem cells were discovered in 2003 and have been used to treat serious diseases in clinics around the world since then.

Although Dr. Nocera is a self-described liberal Democrat who supports Roe v. Wade, and admits in the book that the Democrats have been backing the wrong horse on the stem cell issue, because of their misguided devotion to the abortion issue.

The completely naturally occurring adult stem cell discovered in 2003 has been utilized in treatments in offshore clinics—offshore, because stem cell treatment is currently banned by the FDA. This newly discovered adult stem cell is found stored in our own body fat or is left in umbilical cords and thrown out as bio waste.

Many incurable diseases, conditions and injuries are being cured with simple treatments. One of my favorite cases is a middle-aged doctor who needed a heart transplant and would die within a few more months, and was given a simple I.V. with these Healing Cells, and his heart is now as good as new.

This new technology completely vindicates conservatives, and it WILL LOWER HEALTH CARE costs dramatically . . . by cheaply healing serious conditions that currently drag on for years, requiring expensive drugs and medical care.

Publius

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Global Warming, Climate Change, and Big Foot

March 19, 2013 By Editor Leave a Comment

In the 1970s we were told by the media, university professors, Hollywood stars, and NOAA that the earth was slipping into global cooling, the precursor to an imminent ice age. They assured us that it was our own fault – carbon emissions, etc.

When the data just didn’t add up they changed their minds, and stories, and against all logic and acceptable methods of scientific inquiry began to preach the gospel of Global Warming—a religious-like dogma of the left that required strict acceptance of the proposition, regardless of the lack of evidence.

The press, media, and politicos treated us to an incessant barrage of lectures and finger wagging for several years, insisting that global destruction was imminent, and that we had to immediately cut back on Western industrialization and go entirely green if we wanted to survive. Al Gore’s An Inconvenient Truth became the bible of the left, and every social and political consideration came to be filtered through the lens it created. Gore even proffered a petition signed by thousands of “scientists” (most of whom turned out not to be scientists) bolstering his theory. International treaties intended to hand over American sovereignty to international bodies have been waved in our faces and entire economies have been destroyed by the adoption of “green jobs” policies.

Then came Climategate, where it was discovered that climate “scientists” and government employees were actively falsifying data to prove that human activity is causing earth’s weather to change substantially. Why the need to falsify data if it’s true? That has become the trillion dollar question.

We who are impartially considering the data have been disparaged and derided by those who have drunk from the chalice of Climate Change dogma. It is interesting that no one ever asks what our opinion is. In fact, there is a current petition in circulation signed by more than 31,000 real scientists, including more than 9,000 with Ph Ds (we know that because they must certify their degrees on the petition), which certifies:

“We urge the United States government to reject the global warming agreement that was written in Kyoto, Japan in December, 1997, and any other similar proposals. The proposed limits on greenhouse gases would harm the environment, hinder the advance of science and technology, and damage the health and welfare of mankind.

“There is no convincing scientific evidence that human release of carbon dioxide, methane, or other greenhouse gasses is causing or will, in the foreseeable future, cause catastrophic heating of the Earth’s atmosphere and disruption of the Earth’s climate. Moreover, there is substantial scientific evidence that increases in atmospheric carbon dioxide produce many beneficial effects upon the natural plant and animal environments of the Earth.”

Here is an inconvenient truth for the left. During the early Dark Ages global temperatures were reported to be higher than normal. Then there were the memorable “little ice age” conditions that inundated Europe and North America between 1600 and 1900 with lots of snow and ice. During those centuries witnesses reported that the Thames River in London would freeze so solidly that folks roasted oxen on the ice for months during the winters, and that iceboats could sail down the Hudson River almost as far south as New York City. In fact, the famous December 25, 1776 raid on the British in New Jersey was impeded by a Delaware River choked with ice. (Refer to the famous painting)

When is the last time anyone saw the Delaware choked with ice, or the Thames frozen over? It was over 100 years ago that average temperatures rose to the point that those rivers no longer froze in the winter. Is that due to carbon emissions? Anyone who tells you it is, is just falsifying data.

Publius

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Cyprus Lawmakers Reject Bill to Nationalize Bank Deposits

March 19, 2013 By Editor Leave a Comment

NICOSIA, Cyprus –  Lawmakers in Cyprus rejected a bill Tuesday that aimed to seize part of residents’ bank deposits in order to qualify for an international bailout.

cyprus-bailoutZero lawmakers voted in favor of the bill, and 36 voted against it.

Earlier Tuesday, The government amended its initial proposal to shield small savers from the plan, which aims to raise euro5.8 billion ($7.5 billion) in return for euro10 billion ($12.9 billion) from other eurozone countries and the International Monetary Fund. The total bailout money would go to prop up the country’s banks and public finances.

But even the modification, which will allow those with up to euro20,000 ($25,858) in the bank to escape the confiscation, opposition to the bill remained strong. Four parties and an independent deputy, accounting for 34 of the total 56 seats in Parliament have all said they recommend voting against the bill. The bill needs 29 votes to pass.

With the bill is rejected, Cyprus’ international bailout is now endangered, raising the very real possibility that Cypriot banks could collapse, and the country could face bankruptcy and may even have to leave Europe’s single currency.

Officials have said a “Plan B” should be sought in case the bill is rejected.

Under the amendment, people with between euro20,000 and euro100,000 in the bank would pay a tax of 6.75 percent on their deposits, and those with higher amounts would pay euro9.9 percent. In the initial proposal agreed on in Brussels late Friday, there would have been no exemptions for those with small amounts in the bank.

The plan has been met with fury in Cyprus and has sent jitters across financial markets.

In a heated debate, lawmakers spoke of “raw blackmail” from Europe in forcing Cyprus into the deal, while hundreds of protesters gathered outside Parliament chanting anti-government slogans.

Banks on the island nation will stay shut until Thursday in an effort to prevent a bank run.

In a sign of the scale of disagreement over the deposit charge, the country’s central bank governor, Panicos Demetriades, recommended that no accounts below euro100,000 be touched. That level represents the amount of savings that are supposed to be insured if a bank collapses.

“The credibility of, and trust in the banking sector depends on this,” said Demetriades, who conceded that he expects at least 10 percent of deposits to be withdrawn when the banks eventually re-open.

Failure to pass the bill could mean no bailout money from the eurozone and IMF and lead to Cyprus’s bankruptcy, which could reignite concerns in financial markets over the single currency’s future. That would likely put deposits in the country’s banks under even more threat.

Although Cyprus is the smallest eurozone country to be bailed out, the details of the plan sent shockwaves through the single currency area as it was the first time savers’ banks accounts have been directly targeted. Other bailed out countries such as Greece, Ireland and Portugal have raised funds by imposing new taxes.

Proponents of the deposit seizure argue that this way gets foreigners who have taken advantage of Cyprus’s low-tax regime to share the cost of the bailout of the banks, which have been hit hard by their over-exposure to bad Greek debt.

About a third of all deposits in Cypriot banks are believed to be held by Russians.

Finance Minister Michalis Sarris was flying to Moscow Tuesday afternoon to meet with his Russian counterpart.

Andreas Charalambous, a senior official at the ministry, said the aim is to extend repayment of a euro2.5 billion loan Russia granted Cyprus in late 2011 when the country could no longer borrow from international markets.

He said Cyprus was also looking for “potential interest for further investment in the country.”

Opponents say a blanket charge on people’s bank accounts will hurt ordinary Cypriots more, and could shake the confidence of all in the country’s banking sector. And by going after deposits, European policymakers have set a precedent that could be repeated in the future. The worry of bank runs across Europe lies at the heart of market concerns.

Charalambous said Cypriot authorities believe depositors should be protected, but that a wholesale exemption for those below euro100,000 would mean a “disproportionate” burden on large savers, and a “very detrimental” knock-on effect on economic growth.

“Because of the size of the estimated (bailout) needs, the burden on those above euro100,000 would be such that it would again impact small people because it would destroy the ability of the country to attract foreign investment,” Charalambous said.

In a Monday night teleconference, eurozone finance ministers concluded that small depositors should not be hit as hard as others. They said Cyprus should stagger the seizures more, but insisted that the overall take should stay the same.

President Nicos Anastasiades, who was elected less than a month ago, told German Chancellor Angela Merkel Monday night that “the possibility of reducing the requirements from self-raised funds is being explored,” a Cypriot government spokesman said.

The two leaders were expected to speak again on Tuesday, he added.

Christine Lagarde, the head of the International Monetary Fund which is participating in Cyprus’s bailout, said in Frankfurt that the IMF was “extremely supportive of the Cypriot authorities’ intentions to introduce more progressive rates in the one-off tax.”

Published March 19, 2013 / Associated Press

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California Businesses Fuming Over Retroactive $120M Tax

March 19, 2013 By Editor Leave a Comment

California’s top-end taxpayers — already steamed over a recent hike in the nation’s highest state income tax — are now fuming over a new $120 million retroactive tax grab on small business owners.

california_taxIn December, the state’s tax authority determined that a tax break claimed over the past few years by 2,500 entrepreneurs and stockholders of California-based small businesses is no longer valid and sent out notices of payment.

“How would you feel if you made a decision, which was made four years ago, (and) you absolutely knew was legally correct and four years later a governing body came in and said, ‘no, it’s not correct, now you owe us a bunch more money. And we’re going to charge you interest on money you didn’t even know you owed’,” Brian Overstreet told Fox News from his office north of San Francisco.

Last year, Overstreet and his fellow investors sold Sagient Research Systems and immediately reported the sale to the California Franchise Tax Board, the state’s version of the IRS. “It was good for the shareholders, it was good for the employees and good for those of us who founded it,” Overstreet said about the sale of the data mining company. “We paid the tax based on the law at the time.”

But the FTB changed its interpretation of the law after a state appeals court ruled unconstitutional a qualifying provision of the break requiring companies to maintain 80 percent of their workforce in California. Instead of asking the legislature for guidance on what to do, the FTB suspended the break in its entirety and ordered anyone who’s claimed it in the last five years to pay up.

“What that translates into is tens of thousands, if not literally hundreds of thousands, of potential jobs,” Overstreet contends.

Overstreet said he’s learned more about the workings of state government in the last two months than he ever knew before and he’s become the point person for others like him who were surprised by the FTB’s decision. “It’s going to cause not only significant financial hardship but real personal stress on a lot of people who shouldn’t be worried about this,” he said. “They did what is right. They paid their taxes. They should be off working away at their next business — instead they’re having to spend their time fighting this stuff.”

Overstreet wouldn’t disclose the exact amount the FTB says he owes but said it was “well into the six figures,” and calls it a sucker punch from the state.

The taxpayers fighting the FTB won an early victory in their fight when the tax board announced a temporary delay in issuing actual bills, technically called Notices of Proposed Assessments. It’s believed the additional time is to allow the state’s political leaders time to figure out a solution.

“Once the revenue is identified, those folks up in Sacramento will figure out how to spend it already,” warns former state Sen. George Runner. “And that’s what makes this so difficult. Even though it has this great bipartisan support as being wrong.”

Earlier this month, lawmakers from both parties introduced legislation that would force the FTB to scrap the retroactive tax bills. “Californians planned and based their actions on the language of the law as it existed,” Democratic Sen. Ted Lieu said in a statement. “Going backward in time and changing the rules innocent taxpayers relied upon violates the very essence of the rule of law.”

Republican Assemblyman Jeff Gorell’s companion bill would prohibit the state from charging interest and penalties in similar situations in the future.

“We want to unwind this poor decision and bring relief to small business owners throughout the state, while also setting prohibitions against this kind of surprise tax increase again for the future.”

What’s not as clear is what Gov. Jerry Brown thinks of the issue. “Quite frankly, we haven’t heard from the governor on this and the governor could solve this,” Runner, a Republican, said. “Ultimately, the legislature can try to fix it, but ultimately the bill still has to end up on the governor’s desk.”

Brook Taylor, a spokesman with the governor’s business development office, told Fox News in an email that the tax credit “provided a real boost to entrepreneurs” and that the court’s ruling was unfortunate.  Taylor added that, “we are reviewing the situation to determine how best to help these business owners given the court’s decision.”

California’s high tax rates, strong environmental regulations and a Democratic lock on many public offices have led some to conclude the state is anti-business. Texas Gov. Rick Perry, among other state executives, has made repeated overtures to the state’s business leaders to relocate. Those criticisms have been regularly rebuffed by Brown and his staff.

During a recent dust-up over a radio ad promoting Texas, Brown reportedly said, “you go where the gold is” and that Perry is “not going to Lubbock, or whatever those places are that make up that state.”

What’s not addressed by the pending legislation is what to do about the future of the tax credit. It’s been around for 20 years to promote job-growth and investment — especially in the computer technology and bio-research industries. “California has always prided itself in the ability to be that incubator for high-tech, for entrepreneurial investment,” Runner said. “And this just goes to the core of that. Undermines our credibility, if you will, on that particular issue.”

Overstreet’s main focus has been on retroactive part of the FTB’s action but he also said if lawmakers allow for the tax break to go away entirely it will have consequences for the state. “As a going-forward problem if entrepreneurs are no longer allowed this kind of incentive, there’s no longer any reason for us to intentionally grow our companies here in California. We are going to take our business to where it is the cheapest and most effective place to hire people.”

By Lee Ross / Published March 19, 2013 / FoxNews.com

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics

Cyprus’ Decision to Seize Bank Deposits

March 19, 2013 By Editor Leave a Comment

PARIS –  Lawmakers in Cyprus are still scrambling for a way to raise €5.8 billion ($7.5 billion) to help pay for an international bailout of the country’s banks and government.

cyprusA plan to seize up to 10 percent of people’s savings has been met with fury and it has raised concern, if not panic, in the rest of Europe about the security of bank deposits in times of financial turmoil.

On Tuesday, Cypriot lawmakers are scheduled to vote a revised plan that would not be so burdensome for people with less than €100,000 in the bank. Any plan must be approved by the other eurozone countries, which would then commit €10 billion in rescue loans to Cyprus.

Banks in Cyprus will remain shut until Thursday to give political leaders time to hash out a deal.

Here’s a look at the plan and the problems it may pose.

HEY, HOW CAN THEY DO THAT?

As a member of the euro currency, Cyprus can to raise or lower taxes whenever it wants. It isn’t the first time that a eurozone nation has raised taxes to cope with mounting debt and to prop up struggling banks. Residents of Greece, Portugal and Ireland — all bailout recipients — have seen their tax bills skyrocket in recent years as those countries tried to reduce their debts. But Cyprus is charting new ground here, and there could be legal — and political — challenges.

AND HOW EXACTLY WILL IT WORK?

Banks have already acted to seal off the amount of the levy — a 6.75 percent tax on deposits under €100,000 and 9.9 percent on those above — so depositors can’t access it. Banks will remain closed until Thursday to avoid a rush of withdrawals while lawmakers finalize the move. They will vote on Tuesday, but some are seeking modifications, mainly to lower the tax rate on deposits under €100,000. To do that, however, they have to raise the rate for the larger depositors, since the overall scheme has to raise a total of €5.8 billion.

HAS THIS EVER HAPPENED BEFORE?

So far in the euro crisis, depositors have been protected. But European countries have taxed bank deposits before. In the 1990s, Italy levied a tax on every bank account to stave off the collapse of its lire currency. The rate, however, was miniscule — 0.06 percent — compared to what Cyprus is enacting. Iceland — another island with an outsized financial sector, although worse weather — also relied on depositors to prop up its banks. When the crisis hit there in 2008, Iceland protected its domestic deposits but reneged on deposit insurance for overseas, Internet-based accounts held by British and Dutch. Those two governments stepped in to help their citizens to the tune of $5 billion. The U.K. and the Netherlands sued Iceland unsuccessfully in a European court to get their money back, but Iceland has nevertheless started to repay some of that money.

European officials are promising this Cyprus is a unique case, and they are right in one aspect: Cypriot banks are overwhelmingly funded by deposits, not bondholders. So it wouldn’t have been very fruitful to go after bondholders.

WHO IS AFFECTED?

All people with money in Cypriot banks — except those with money in Greek branches, which will be sold to Greek banks. EU and IMF creditors clearly wanted to protect struggling Greece, but perhaps also saw that Greece is the most likely place in the eurozone for a bank run. Protecting depositors there minimizes that possibility. Of the more than €68 billion on deposit in Cypriot banks, foreigners hold about 40 percent — and most of those are Russians. Cyprus could have only gone after non-EU depositors, but it may have been hard to distinguish between Cypriot and Russian savers, said Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics in Washington. That is because many Russians have dual citizenship and many Russian businesses are registered on the island. Kirkegaard said Cypriots may paradoxically welcome this measure since the government just managed to widen its tax base to include a lot of Russians; the taxes levied in Greece, Portugal and Ireland were for residents alone to shoulder.

WHY DID CYPRUS NEED A BAILOUT?

Cyprus built its economy in recent years by becoming a financial center, much the way Ireland and Iceland before it did. Its banks offered Internet accounts to foreigners, were renowned for their service, provided substantial privacy to clients and had very low taxes. It worked so well that Cyprus’ banking industry ballooned to nearly eight times the country’s gross domestic product at the height of the boom. In December, it was still more than seven times Cyprus’ €17.5 billion GDP. Russians — looking for warmer climes, lower tax rates and shared culture in the form of Orthodox Christianity — are thought to hold the majority of those accounts, with about €20 billion in the island’s banks.

But Cyprus’ banks held a lot of Greek debt and suffered significant losses when they took a writedown of those bonds as part of the Greek bailout. Much of Cyprus’ bailout money will be used to recapitalize Cypriot banks to prevent them from collapsing. Like other eurozone countries, Cyprus has also seen its deficit and debt explode as growth has ground to a halt. And with the banking system so large, the government wouldn’t have been able to bail it out even in a healthy economy.

WHY DO RUSSIANS KEEP SO MUCH MONEY IN CYPRUS?

Russian businessmen have preferred to place their savings in offshore jurisdictions, partly to escape political uncertainty and corruption in Russia. Cyprus offers a 10 percent corporate tax rate and relatively stable political situation. Cyprus is also believed to be a top destination for money-laundering. It is much safer for a corrupt Russian official to keep proceeds from illegal activities abroad, hiding information about their fortunes and holdings away from the prying eyes of Russian banking regulators. Russian officials estimated that about $49 billion, which is equivalent to 2.5 percent of Russia’s gross domestic product, was wired to foreign accounts illegally last year.

WHAT HAS THE MARKET REACTION BEEN?

Stock markets and the euro dropped on Monday but not too much. Kirkegaard says that the decision to tap depositors indicates that the European Central Bank is confident that the risk of a bank run elsewhere in the eurozone is low — and by excluding Greek branches of Cypriot banks, they have reduced the possibility even further.

But Heather Conley, director of Europe program for the Center for Strategic and International Studies, says it’s hard to know the far-reaching implications of this one-off deal. The “exceptions” created to solve Europe’s debt crisis are adding up, she said. And some investors may look at this late-night, three-day-weekend deal and see what she saw: a dress rehearsal for a country dropping out of the euro.

___

Published March 19, 2013 / Associated Press / AP Writer Menelaos Hadjicostis contributed to this report from Nicosia, Cyprus.

Filed Under: All Stories, Economy, Elections, Entitlement, Foreign

What’s the Problem with a $16.6 Trillion Debt?

March 15, 2013 By Editor Leave a Comment

President Obama and his associates on the left follow the Keynesian theory of economics, the idea that when economies wane, government deficit spending will reignite the flame. To that end the Obama administration has spent trillions of dollars in 4 years, around 40 percent of which has been borrowed, and on which the country is now paying interest.

The national debt stood at $10 trillion when Barack Obama moved into the Oval Office just four short years ago. That nearly incomprehensible amount represented the unbridled deficit spending of generations of left-leaning presidents and congresses—Democratic and Republican.

Today the national debt stands at $16.6 trillion, more than a 60 percent increase in so short a time. If the congress complies with the President’s demands for increased spending, the national debt will exceed $18 trillion by next year.

What’s the problem, you ask?

When Americans turn off the alarm clock and hustle off to work, the first $1.2 billion they generate every day must be siphoned off of the economy just to pay the current interest on the national debt. That amount grows each day as additional money is borrowed to run the government, and as unpaid interest on the debt compounds.

The federal budget is up to $3.8 trillion a year, with multiple stimulus packages filled with crony payoffs and pork barrel spending wasting additional trillions, without any economic return to the American people. The economy is worsening, with real unemployment and underemployment over 15 percent.

Government leaders should have put the country on a fast-track to pay off the national debt 20 years ago . . . and 10 years ago . . . and 3 years ago. Those on the left boisterously proclaim that the only answer is to raise taxes. We challenge the left to demonstrate to the public when raising taxes has ever improved the economy. In fact, it has never happened. It is when taxes are slashed that money is freed up and businesses invest in new jobs, putting people to work and heating up the economy. President Kennedy proved this, as did Ronald Reagan.

Time after time Keynesian economics has failed. So why do our universities still tout it as the model for our own economy? Why are our government leaders drawing all available dollars, current and future, into the abyss of federal spending? How many jobs were created with the shovel ready projects promised by President Obama as he highjacked nearly $900 billion in the first stimulus package?

Debt creates poverty. Ever family knows this. Those who frequent the check cashing-payday loans establishments have learned the hard way that it is a recipe for financial disaster. So when will our government leaders learn the lesson? We recall well as Jimmy Carter addressed the nation and scratched his head in confusion as he explained that he had implemented all of the university approved, liberal orthodox policies, yet the country appeared to be languishing in a “malaise.” These are people that don’t seem to learn from past mistakes. Debt equals poverty. Perhaps this is why Americans are becoming poorer with every passing day.

Publius

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics

“Fairness” in Taxes and Redistribution

March 15, 2013 By Editor Leave a Comment

As the propaganda press stirs up the occupying proletariat in our nation, and our streets become filled with couch potatoes demanding their fair share of that which has been earned by others, the insanity and impossibility of the scene serves as ample proof that too much weed indeed dulls the human brain’s ability to reason.

The 99 percent demand that they be supported by the 1 percent. They demand that taxation be applied “fairly.”

Indeed, 47 percent of the country pays no federal income taxes whatsoever, and the top 25 percent of earners pay 87 percent of the total burden. The top 1 percent pay 36% of all federal income taxes, while the top 5 percent pay 58%.

In fact, this distribution scheme is unfair, but it is not those who now bear a significantly higher portion of the burden who should be made to shoulder even more of the load.

There is a story that I heard years ago about the fairness of the distribution of tax burdens that I think will be instructive. It’s precise origin is unknown as far as I know, but I would like to give proper credit if I could find the person who developed it.

Suppose that every day ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers, he said, ‘I’m going to reduce the cost of your daily beer by $20. Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men – the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

‘I only got a dollar out of the $20,’declared the sixth man. He pointed to the tenth man,’ but he got $10!’

‘Yeah, that’s right,’ exclaimed the fifth man. ‘I only saved a dollar, too. It’s unfair that he got ten times more than I!’

‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? The wealthy get all the breaks!’

‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get anything at all. The system exploits the poor!’

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

Publius

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics

Senate Dems Poised to Advance Gun Ban, Seek Obama’s Help in NRA Battle

March 14, 2013 By Editor Leave a Comment

WASHINGTON –  Senate Democrats are poised to pass a renewed and strengthened assault-weapons ban out of committee Thursday as part of a package of measures advancing to the floor, but are appealing to President Obama to help battle opposition from Republicans and gun-rights supporters.

Dianne_FeinsteinThe Senate Judiciary Committee, after advancing bills earlier in the week to enact near-universal background checks and combat gun trafficking, on Thursday morning will take up what is arguably the most controversial measure drafted since the Newtown, Conn., shooting.

Sen. Dianne Feinstein’s effort to revive an assault-weapons ban, as well as a ban on large-capacity magazines, has revived a tense debate over gun rights in Washington and across the country. The panel seemed likely to approve the measure Thursday on a party-line vote. But once it reaches the full Senate — probably in April — the measure faces heavy opposition by Republicans and some moderate Democrats, as well.

Feinstein acknowledged she’d need more backing if it is to stand a chance on the floor — even then, it’s hard to imagine a circumstance where the Republican-controlled House would allow the measure to proceed.

“I’d like to see everybody doing more,” bill sponsor Sen. Dianne Feinstein, D-Calif., said Wednesday when asked if she’d like more assistance from Obama. “Yes, absolutely, we need help. We have the 800-pound gorilla out there” — a reference to the potent National Rifle Association.

Obama made an assault weapons ban part of the gun curbs he proposed in January, a month after a shooter with an assault rifle killed 20 first-graders and six educators at a school in Newtown, Conn. Feinstein and others have argued that such firearms are used in a disproportionate number of mass shootings and shouldn’t be available to civilians.

The prohibition has emerged as one of the most controversial of the gun restrictions being considered in Congress. Foes of barring the weapons say law-abiding citizens should not lose their Second Amendment right to own the weapons, which they say are popular for self-defense, hunting and collecting.

Feinstein’s bill would also ban large-capacity ammunition magazines carrying more than 10 rounds, which she and her allies say allow shooters to inflict more casualties before pausing to reload, which is when they might be stopped. Adam Lanza, the Newtown gunman, was said to have had 30-round magazines.

The measure’s passage by the Judiciary panel has been a foregone conclusion for some time. It will be far more vulnerable in the full Senate, where Democrats are expected to need 60 votes for passage through the 100-member chamber. That is where the NRA and other pro-gun groups are working hard for the ban’s defeat.

“We are focused on the next step of the legislative process,” Chris W. Cox, the NRA’s chief lobbyist, said Wednesday.

There are 53 Democrats plus two independents who generally side with them. Republicans seem ready to oppose the ban overwhelmingly, and Feinstein can’t count on a half-dozen Democrats from Republican-leaning states who face re-election next year.

The ban also stands little chance of approval in the GOP-controlled House.

Feinstein’s bill would ban semi-automatic weapons — guns that fire one round and automatically reload — that can take a detachable magazine and have at least one military feature like a pistol grip.

It specifically bans 157 named weapons. But in an effort to avoid antagonizing those who use them for sports, the measure allows 2,258 rifles and shotguns that are frequently used by hunters.

It also exempts any weapons that are lawfully owned whenever the bill is enacted.

Feinstein was a leader in passage of a 1994 ban on assault weapons and high-capacity magazines. Congress failed to renew it when it expired in 2004.

There are no definitive figures on assault weapons or high-capacity ammunition magazines in the U.S., since there are no government registries of firearms and Congress has curbed federal research on guns since the late 1990s.

When the previous assault weapons ban took effect in 1994, there were an estimated 1.5 million assault weapons and at least 25 million large-capacity magazines that were privately owned in the U.S.

Proponents of banning the weapons cite studies showing that once the assault weapons ban took hold, the portion of gun crimes using those firearms dropped by up to 72 percent in six cities surveyed. They also argue that each assault weapon taken off the streets reduces the potential for mass shootings.

Opponents cite studies showing that assault weapons have been used in fewer than 1 in 10 crimes involving firearms and argue that eliminating those weapons would put only a minor dent in gun violence. High-capacity magazines are involved in up to a quarter of gun crimes.

The Judiciary Committee has already approved three other measures expanding the requirement for background checks for gun buyers; toughening federal laws against illegal gun traffickers and those who purchase weapons for people barred from owning them; and increasing aid for school safety.

The Associated Press contributed to this report.

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics

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